In a groundbreaking development at the intersection of space exploration and commerce, Eutelsat Communications SA (ETL), a prominent satellite company, has successfully completed its merger with OneWeb, a global low Earth orbit (LEO) satellite communications network. This historic union represents the epitome of India-France space cooperation, transitioning from the purview of governmental space agencies into the dynamic realm of space commerce.
Despite its initial financial challenges, OneWeb has emerged as a formidable competitor to StarLink, effectively dismantling the latter’s monopoly in the satellite internet industry. This flourishing and diverse satellite internet business bodes well for our increasingly digitised world.
As a result of this merger, a new entity, Eutelsat Group, has emerged, with its headquarters situated in Paris. Eutelsat Group now oversees OneWeb as a subsidiary, operating under the name Eutelsat OneWeb. Significantly, Eutelsat Group continues to be listed on the Euronext Paris Stock Exchange and has announced the admission to trading on the London Stock Exchange under the ticker symbol: ETL.
The strategic positioning of the newly established Eutelsat Group is geared toward its ascension as a global leader in space communications. By leveraging Eutelsat’s robust Geostationary Earth Orbit (GEO) satellite fleet with OneWeb’s low-latency and expansive Low Earth Orbit (LEO) constellation, the group aims to provide customers with fully integrated global connectivity services. This visionary initiative underscores Eutelsat’s pioneering role in the space industry and its unwavering commitment to advancing satellite technology.
OneWeb’s operational LEO network, expected to achieve global coverage by the end of 2023, sets the stage for a synergy that promises to unlock novel market opportunities and applications. These include Fixed Connectivity (Backhaul, Corporate networks), Government Services, and Mobile Connectivity (Maritime and Inflight). Notably, Eutelsat Group remains steadfast in its dedication to broadcast and video services, delivering innovative solutions that bridge the gap between broadband and broadcast.
Anticipating substantial growth, the combined entity has set its sights on a double-digit revenue Compound Annual Growth Rate (CAGR) over the medium to long term, with the goal of reaching approximately €2 billion in revenue by 2027. Furthermore, the adjusted EBITDA (earnings before interest, taxes, depreciation, and amortisation) for the combined entity is expected to experience a double-digit CAGR, outpacing revenue growth during the same period.
In summary, the merger between Eutelsat and OneWeb marks a pivotal moment in the satellite communications industry. Eutelsat Group, now a global leader, stands poised to offer integrated connectivity services worldwide. This transformation underscores their steadfast commitment to propelling satellite technology forward and ensuring that customers have access to cutting-edge solutions. As the digital divide narrows, Eutelsat Group’s strategic fusion with OneWeb represents a major milestone in the pursuit of global connectivity and digital inclusion.
